MickeyXtreme's News Archive September 2004
                                                      
                                                      Thursday
September 30, 2004

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Disney unit to start making 3-D animated films

Miramax Films will co-finance and distribute computer-animated family films starting with "Opus," adapted from the popular "Bloom County" comic strip, the company said Thursday.

Miramax will release some of the films under its Dimension banner and produce them in conjunction with Wild Brain Inc., a San Francisco-based animated film company perhaps best known for creating the nasty toe fungus in commercials for the prescription drug Lamisil.

The multiyear deal also gives Miramax and Dimension the opportunity to distribute direct-to-video productions fully financed by Wild Brain, the companies said.

The deal envisions lower budget feature films consistent with Miramax's independent studio status. Films will cost about half of the bigger budget movies produced by Pixar Animation Studios or DreamWorks SKG.

"What you spend doesn't necessarily reflect on how good the movie is," said Jim Miller, Wild Brain chairman.

The announcement comes as The Walt Disney Co., which owns Miramax, is gearing up its own computer-animated film production to replace Pixar's films. Disney's deal with Pixar expires after the delivery of next year's film "Cars."

Disney will release its first computer-animated film "Chicken Little" next year.

The Miramax-Wild Brain collaboration will probably produce one film every 18 months or even longer, with the first effort targeted for late 2006 or early 2007.

The choice of subject for the first film reflects Miramax's eclectic tastes and could prove to be a hard sell, especially to younger audiences.

The character of Opus is a rotund penguin with a cynical world view -- far from the heartwarming characters at the center of such films as "Finding Nemo."

"We agree that it's a challenge," Miller said. "How do you take the essence of those characters, who are a little cynical, and move them into a story that can reach adults at the 'Bloom County' level and children at their level? We think we have a terrific story."

The challenge has been given to screenwriter Craig Mazin, whose credits include "Scary Movie 3." "Bloom County" is written by Berkeley Breathed.

Dimension has been working on the "Opus" project for a year. Wild Brain's participation in the deal is being financed by European private equity firm Syntek Capital AG.

Wild Brain also produces the preschool television series "Higglytown Heroes" on the Disney Channel, as well as commercials for Coca-Cola and Nike.

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Union recommends voting against Disney World contract proposal

 
The union representing almost half of Walt Disney World's 53,000-person workforce recommended that members defeat a contract proposal when they vote on Friday.

"It will be a recommended no-vote," said Joe Condo, who is heading negotiations for the Service Trades Council Union.

The union represents workers ranging from hotel maids to park ticket-takers to the workers who play costumed characters such as Mickey Mouse.

As a rule, Disney officials don't comment on contract negotiations.

Union officials oppose the elimination of some overtime provisions, a significant increase in the cost of health care insurance and a proposal to eliminate a pension plan for new hires, offering a 401K plan instead.

Starting minimum wage in the first year of the three-year contract would increase 10 cents to $6.80 with 10 cent increases in each of the next two years.

Condo said a strike isn't being considered but that it hasn't been ruled out in future votes.

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Suburbia sizzles in ABC's 'Desperate Housewives'

Welcome to Wisteria Lane, Mr. Cherry's neighborhood.

Here, in seemingly placid suburbia, homemakers tend their husbands, children and flower beds -- while barely suppressing fear and frustration that threaten to blow the place sky high.

That's how Marc Cherry, creator of ABC's "Desperate Housewives," paints his fictional corner of the world. It's a comically dark view but one, he insists, that's a big step removed from satire.

"Satire sounds like you're making fun of something. And the truth is I'm not making fun of the suburbs. I love the suburbs," Cherry said. "I love the values of the suburbs, loved my family, our neighbors.

"It's just that stuff happens. I don't romanticize that life at all."

Growing up in Southern California and Oklahoma (with intermissions in Hong Kong and Iran, courtesy of his father's work in the oil industry) Cherry, 42, saw a fair amount of stuff.

"I remember the husbands leaving with their suitcases and my parents saying, `You're not allowed to ask them what's going on.' I remember the custody battles. The full range of human experience was there."

In "Desperate Housewives," the houses are more perfect and the housewives more perfectly beautiful (and deeply troubled?) than in a typical neighborhood. The series debuts 9 p.m. EDT Sunday.

ABC is hoping it produces some home improvement for the network's ratings, which are in a prolonged slump. It was willing to take a chance on "Desperate Housewives" when other networks passed (good writing but "not gritty enough," HBO told Cherry).

There's no risk when it comes to the ensemble cast, all of whom have solid credentials in prime-time angst.

Teri Hatcher ("Lois & Clark") is Susan, a single mom looking for love, maybe in the wrong places. Felicity Huffman ("Sports Night") plays Lynette, a high-powered businesswoman turned highly frazzled mom. Marcia Cross ("Melrose Place") is Bree, a pent-up perfectionist. Eva Longoria's ("L.A. Dragnet") Gabrielle may be reconsidering the price she paid for a suburban haven.

Hovering nearby is the spirit of Mary Alice (Brenda Strong, "Starship Troopers"), whose suicide stunned Wisteria Lane. She's now a one-woman Greek chorus, watching as her former pals try to keep their balance.

In a TV season crowded with reality programs and endless variations on a criminal theme (the "Law & Order" and "CSI" franchises), "Desperate Housewives" stands out.

Even its title is bold. Cherry recalled one ad industry executive's comment that, although the show had merit, ABC faced an a challenge attracting viewers because of the offbeat name.

"Good heavens," said an exasperated Cherry. "If people are enjoying the heck out of it, they'll watch it. It's that marketing thing of putting the cart ahead of the horse."

For Cherry, the priority was making a smart show that could erase the memory of mediocre sitcoms he'd worked on. He'd started at the top, as a young writer on the hit sitcom "The Golden Girls" (1985 to '92) but then added flops like "The Crew," a "Friends" clone, to his resume.

He wanted to return to the example of "Golden Girls," in which creator Susan Harris explored the lives of older women, and create a show that had something to say and that hadn't been done "a million and one times."

Inspiration hit during a visit with his 67-year-old mother, Martha. Watching a news report on Andrea Yates, the Texas mother who drowned her five children, Cherry expressed bewilderment at such despair.

"My mom took her cigarette out of her mouth and said, 'I've been there,"' he said. She recounted the almost overwhelming burden of being alone with three youngsters while her husband pursued a master's degree. Cherry's mom successfully coped because of family help.

He was struck by the idea that a "perfectly sane, rational woman could have the life she wanted, being a wife and mother ... and still have moments of insanity."

Cherry figures that what was true for his mom is true again, with a twist, in the post-feminist 21st century: Women can decide for family over work but must accept responsibility for the outcome.

"Now it's `I've chosen it, I'm in control. Oh, I can't blame anyone for my own unhappiness, what do I do?"' said Cherry, channeling his characters.

There is no promise of happy endings in "Desperate Housewives," but expect laughs along with the suffering. "The comedy comes out from the fact that our gals tend to make bad choices," Cherry said.

The writer-producer figures that, so far, his own choices are being validated. "Desperate Housewives," heavily promoted by ABC, has drawn plentiful buzz and solid reviews.

"It's nice, ain't no denying that. Having done shows where they weren't talking about them, or when they were talking about them they weren't saying nice things, it's definitely nice."

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Disney upgrades hurricane damage

Like a meteorologist upgrading the severity of a storm, the Walt Disney Co. updated Wall Street Thursday on the impact of hurricane damage in Florida on the company's earnings prospects.

Speaking at a Merrill Lynch conference in California, Disney Chief Financial Officer Tom Staggs upgraded the impact on the entertainment company's fiscal fourth-quarter earnings to be a "strong penny" a share.

Previously, Disney had estimated that the damage would probably come to about a penny a share in the three-month period.

Shares of Disney dropped 32 cents to $22.48 in afternoon trading Thursday.

Disney, like all tourist-oriented businesses in the Sunshine State, faces a potential double hit because of the terrible hurricane damage over the past few months.

On the one hand, the cleanup effort will discourage tourism travel to Disney's world-famous theme park, Disney World. At the same time, the steady stream of business from Florida residents could also slow to a crawl for as long as it takes until life there returns to normal.

On hook in headlines

Disney has had its share of headlines lately.

The company announced a few weeks ago that Michael Eisner, its chief executive of the past two decades, would be retiring in 2006 when his employment contract runs out.

The news touched off a flurry of speculation that Eisner's hand-picked choice, Disney President Robert Iger, would get the job.

But many investors have whispered their doubts about Iger, because he has failed to turn around Disney's problematic ABC division.

Earlier this week, Iger told reporters in London that it was growing more unlikely that Disney could reach an agreement with Pixar.

When Pixar head Steve Jobs broke off negotiations with Disney about a year ago, the news roiled Wall Street because Pixar had been responsible for producing such hits as "Toy Story."

The fallout eventually hurt Eisner's standing with investors. He lost his title of chairman after he received a large no-confidence vote at Disney's annual shareholder meeting March 3 in Philadelphia.

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Eisner's Choice for CEO Woos Wall Street

Walt Disney Co. President and Chief Operating Officer Bob Iger gave an upbeat assessment of the media company's future on Thursday in his first address to Wall Street since being named the sole internal candidate in the race to succeed CEO Michael Eisner.

Iger and Chief Financial Officer Tom Staggs said the entertainment company expected all its divisions to increase earnings in fiscal 2005, but cautioned that Florida theme park earnings were being hit by the hurricanes that have battered the state.

Iger, Eisner's choice as next CEO who must still convince the board of directors that he deserves the top spot, gave a detailed version of the company stump speech. He promised more than a 50 percent rise in earnings before one-time charges in fiscal 2004 and double-digit earnings growth through at least 2007, driven by technology, branding and global expansion.

Television network ABC has seen hints of ratings success in the new fall season, but the Disney executives said money-losing ABC would need ratings improvement and a strong advertising market to break even in the fiscal year beginning.

"So far so good," said Iger, who updated progress on a number of initiatives.

Iger predicted that Disney's Princess line of consumer products would increase revenue by 25 percent next year from more than $2 billion this year. He promised to launch a Disney Channel in India in fiscal 2005, which starts in October, and a China Disney Channel some time thereafter.

Separately, Disney said its Miramax movie studio had signed a deal for its Dimension unit to co-finance and distribute computer animated films from San Francisco-based Wild Brain Inc., starting with a picture about comic strip penguin Opus, the hero of "Bloom County."

Disney is hoping the deal will bolster its animation output as a lucrative agreement with Pixar Animation Studios Inc., whose hits include "Toy Story" and "Finding Nemo," ends next year.

Staggs said a debt restructuring of troubled French theme park Euro Disney would leave Walt Disney Co with more than 50 percent of the equity. That includes about 40 percent of the stock and other investments such as converted long-term lease payments.

Recent Florida hurricanes would depress earnings per share by a "strong penny" in the September quarter and also affect first-quarter results at Disney theme parks, Staggs said. Nearly two months of storms temporarily closed Walt Disney World and slowed bookings.

Visitors from far away could delay bookings and locals would be busy putting their lives in order after the storms, he said. Iger said advance bookings slowed during the storms and had since returned to a "relatively decent" level.

Shares of Disney fell 25 cents, about 1 percent, to $22.55 on the New York Stock Exchange

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Walt Disney Stock

In trading yesterday Walt Disney (NYSE:DIS) President Robert Iger stated that it is "unlikely" that DIS will strike a distribution deal with Pixar Animation Studios (Nasdaq:PIXR). Earlier this year, the two companies ended their partnership, which has produced such movie hits as Toy Story and Finding Nemo. Shares of DIS continue to decline under staunch resistance at their 10-week and 20-week moving averages. The stock is currently perched on key support at its 20-month trendline. DIS has not suffered a monthly close below this long-term moving average since April 2003.

Understandably, pessimism is on the rise toward this entertainment guru. The equity's SOIR has trended higher over the past several days, as options speculators add put positions at a faster rate than calls in the front three months of options. In fact, open interest at the stock's November 20 put surged higher by 2,000 contracts on Wednesday. The equity's current SOIR of 0.81 is higher than 88 percent of all those taken over the past 52 weeks. Wall Street is showing only a slight bullish bias toward the company, with 11 "buy" ratings and nine "holds." On the other hand, short interest surprisingly declined by seven percent over the most recent reporting period to 37 million shares. Yet, with a short-interest ratio of 6.07 days to cover, the stock could still see some short-covering support if it manages to rebound off its long-term trendline.

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Disney, Intel to launch Net content service in Japan

The Japanese subsidiaries of Walt Disney and Intel have teamed to launch a new broadband content service that lets consumers add their own special effects as they watch animated musicals starring Disney characters.

Dubbed "Mickey Symphony," the service will initially offer three segments from Disney's "Fantasia 2000": "Rhapsody in Blue," "Pomp and Circumstance" and "Carnival of the Animals."

PC users can set new backgrounds or rotate the "scenery." The service will be available by late October, over a broadband network owned by Nippon Telegraph and Telephone.

This is the second information technology initiative from Walt Disney in less than two months. In August, the company introduced a Disney Dream Desk PC that has Mickey Mouse ears.

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Disney sees 'strong penny' 4th-qtr hit of storms

Walt Disney Co. Chief Financial Officer Tom Staggs said on Thursday that recent Florida hurricanes would depress earnings per share by a "strong penny" in the September quarter and also impact first-quarter results at Disney theme parks.

Halfway through the hurricane season, Disney had said it expected about a penny per share impact in the September-ending fourth quarter. And Staggs said at an investor conference that that was still the general range of impact after four storms had hit the state where Walt Disney World is located.

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Miramax, Wild Brain in computer animated film deal

Walt Disney Co.'s Miramax unit and computer animation group Wild Brain Inc. have struck a deal to produce a film vision of the newspaper comic strip "Opus," the companies said on Thursday.

The move marks the latest attempt by Disney to bulk up its computer animation business as its lucrative distribution deal with "Toy Story" and "Finding Nemo" creator Pixar Animation Studios Inc. approaches an end next year.

Disney's Dimension films, which is part of Miramax, has struck a deal for a number of computer animated films with San Francisco-based Wild Brain.

Their first project will be a movie based on the nervous, politically charged penguin Opus who debuted in the "Bloom County" comic strip by Berkeley Breathed.

Dimension and Wild Brain will split the costs of agreed projects which will be distributed by Disney.

Disney also can distribute Wild Brain direct-to-video productions under the agreement.

Pixar's next movie, The Incredibles, is scheduled for release Nov. 5 under its current deal with Disney.

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Disney’s voice of 'Pocahontas’ visiting weekend VU festival

The fourth annual Native American Festival this weekend will build on the success of past events.

With a Friday night preview, the Saturday festival will be a potpourri of visual and performing arts, with opportunities to buy crafts and sample Native-American foods, said Jane Bello-Brunson, director of the Office of Multicultural Programs.

“We don’t have many Native American students on campus, unfortunately,” she said.

“But four years ago some students who had gone to a powwow came to me and asked if we could have one here,” she said.

Bello-Brunson said such an event was too big for the limited funds available, so she suggested a festival to promote local awareness of native cultures.

Bello-Brunson said she wrote some grants to the Porter County Convention, Recreation, and Visitors Commission and the Cultural Arts Committee on campus to obtain funding.

The festival will be held in the Athletics — Recreation Center with an arts and crafts sale, art exhibits, storytelling, and a Saturday concert.

Jesse Hummingbird, a member of the Cherokee Nation, will be the focus of an art exhibit and reception in the Mueller Hall Commons starting at 7 p.m.

The reception is free and open to the public.

Saturday’s events include a reenactment of village life by Potawatomi tribe members, Cherokee storyteller Karen Hartman, the Bear Clan singers and dancers from Wisconsin, plus beadmaking by Linda Yazul of the Potawatomi Pokagon Band from Michigan.

A concert is planned at 7 p.m. in the ARC by musicians Arvel Bird, a folk violinist from the Shivwit-Paiute tribe in Utah, and flutist J.J. Kent of the Oglala Lakota Nation.

Entertainment also includes vocalists Irene Bedard and Deni with their band, performing music that blends traditional influences and contemporary style.

Bedard is an actress of Inupiat Inuit and Cree descent, and is best known as the voice of Disney’s Pocahontas.

She has won awards for her appearances in “Lakota Woman,” “Smoke Signals,” and other films.

Bedard also helped create “Guardians of Sacred Lands,” a group formed to bring awareness to native issues and educate the public about sacred lands.

Bello-Brunson said Bedard’s appearance should be a special treat for children in the audience.

The Festival is sponsored by the OMP, the university’s Union Board, the Native American Student Council, and the Cultural Arts Committee.

Supporting the festival is a $2,500 grant from the PCCRVC.

Admission to Saturday’s events is $5 for adults, $3 for VU students, and $1 for children under 12 with parent.

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Iger Says Disney, Pixar Have 'Outgrown One Another'

Walt Disney Co. president Robert Iger said Wednesday that a renewal of the studio's deal with Pixar is unlikely, adding that the partnership has approached the end of its natural life span.

"It would be nice to continue the relationship to infinity, but yeah, I think we've outgrown one another in a sense. I'm not ruling out some sort of cooperation -- if not with Pixar, then with somebody else," Iger said at the Royal Television Society's annual conference here.

Animosity between Disney CEO Michael Eisner and Pixar chief Steve Jobs was said to have played a role in Pixar's decision in January to abruptly announce it was breaking off contract renewal negotiations with Disney. Eisner has publicly expressed hope in recent months that the two could continue their relationship beyond the current contract, which expires at the end of next year.

"I'm just an eternal optimist," Eisner said at an investors conference in June when asked about whether Disney might yet strike a new deal with Pixar. "I have always thought from Day 1 that this is in Pixar's interests to continue with the Walt Disney Co."

On Wednesday, though, Iger said the relationship with Pixar had been "long and productive, both financially and creatively," but admitted that the deal has probably reached its conclusion.

"Deals like this have a certain longevity or life span," Iger said. "When Pixar started, it needed the might of the Walt Disney Co. in terms of marketing clout and distribution clout and money just to pay for those films. As it grew, it weaned itself from its need for Disney. It now sees itself as able to pretty much go out on its own, not needing funding or marketing support."

But he added that Disney is still in play for creative partnership and conceded that media conglomerates are not always the best hub for creative passion. "No one can hope to have a monopoly on creativity -- when companies get as big as ours, it is not necessarily the most fertile ground in the world," he said. "People's passions have a tough time surfacing."

Disney has been stressing that it has its own slate of computer-animated movies in the works, starting with next year's planned release of "Chicken Little."

Still, Pixar's critical and boxoffice success with each of its five films (the two "Toy Story" films, "Monsters, Inc.," "A Bug's Life" and "Finding Nemo") has been unparalleled. Its upcoming "The Incredibles" has been gathering strong buzz in recent weeks.

Iger was addressing top U.K. broadcasting executives, among them British Sky Broadcasting CEO James Murdoch, ITV chairman Charles Allen and BBC director general Mark Thompson.

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Disney dissidents backing down

Just two weeks after threatening to run an alternate slate for Walt Disney Co.'s board at next year's annual meeting, Walt Disney's nephew Roy Disney and fellow dissident shareholder Stanley Gold have backed down, endorsing a Mouse House plan that doesn't meet many of their original demands.

In their first public statement since the Disney board announced plans last week to hire an outside search firm to identify a new CEO by next June, the former board members seemed pleased by two key moves: A thorough global search for a new CEO and the indication that Eisner will not take the chairman job or even stay on the board after he leaves the company.

In an unusually cordial statement, the pair said, "The Board displayed precisely the kind of leadership and independence which we and the vast number of shareholders who share our concerns have been requesting."

Rapprochement marks a retreat by Disney and Gold, who had previously said they wanted a new director picked by the next annual meeting, which will take place in or around March, and for Eisner to leave well before his planned departure in September of 2006.

But despite the planned naming of a new topper by June, neither Eisner nor the board have said whether the CEO will leave earlier than two years from now, when his contract expires. That could leave 15 months or more between the naming of a new topper and his or her officially taking the reigns.

In addition, a statement last week by chairman George Mitchell made clear that prexy/COO Bob Iger is the only internal candidate for the job. Mitchell praised Iger at the time as an "outstanding executive," leading many observers to believe he has the clearest shot at the job.

Gold and Disney have repeatedly blasted Iger as a carbon copy of Eisner and said they wouldn't accept him as a replacement. In an interview with Variety soon after Eisner announced plans to ankle, Disney said Iger taking over would be "the horror show of all time."

The new public statement from Disney and Gold means that Mouse House shareholders can expect a much calmer annual meeting in 2005. Earlier this year, Roy Disney and Gold led a charge to oust Eisner, prompting 45% of voting shares to oppose the CEO's re-election to the company's board. As a result, Eisner dropped the title of chairman.

But the pair indicated they'll be keeping a watchful eye, particularly on Eisner's departure. "To be sure, the Board's official statement left some questions unanswered," they noted. "But we are willing to take chairman George Mitchell at his word that Mr. Eisner will step down as both CEO and a member of the Disney Board as soon as his replacement is installed."

In an interview with Reuters, Roy Disney said he and Gold might still run an alternate slate if the Mouse House Board doesn't follow through on its promises. "If this turns out to be a charade, we will go forward with what we promised we would," he said.

The two shareholders, who run investment company Shamrock Holdings, also endorsed a plan by several public pension funds with stakes in Disney to name new independent directors to the board. They specifically endorsed two names that have been floated in the press -- media mogul Haim Saban and former Securities and Exchange Commission Chairman Richard Bredeen -- and asked that independent board members be named promptly in order to assist with selection of a new CEO.

If the dissidents remain docile, though, some Wall Streeters will be left wondering what happens next to Roy Disney, who has spent the past year since he was forced off the board as a full-time Mouse House gadfly.

Recently named by Forbes as the 273rd richest person in America with a $1 billion net worth, though, he'll have plenty of flexibility to decide.

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                                                   Wednesday September 29, 2004
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Disney Says Deal With Pixar 'Unlikely'

Disney Exec Robert Iger Says New Distribution Deal With Pixar Animation Studios Is 'Unlikely'

Walt Disney Co. president and chief operating officer Robert Iger said it is "unlikely" Disney will strike a new distribution deal with Pixar Animation Studios, according to a report on CNBC.

Earlier this year, Pixar broke off talks with Disney on extending their partnership after the two couldn't agree on new terms that would be more favorable to Pixar.

Pixar has since met with other studios and says it has plenty of time to strike a new deal.

Disney has distributed such Pixar films as "Toy Story," "Monsters Inc." and last year's big hit, "Finding Nemo."

Pixar's last film under the distribution deal with Disney is "Cars," which will be delivered in 2005.

Pixar, based in Emervyville, Calif., had revenue of $262.5 million for the fiscal year ended Jan. 3.

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Comcast ready to get in game against ESPN
After being denied a chance at buying ESPN parent Walt Disney Co., Comcast is going after the sports giant city by city. Chicago's station launches this week.

One attraction that prompted Comcast Corp. to bid $50 billion for Walt Disney Co. earlier this year was the chance for the cable giant to get its hands on Disney's crown jewel: sports network ESPN.

Now, after being snubbed by Disney's board, Philadelphia-based Comcast is pursuing a daunting alternative strategy: competing with ESPN one market at a time.

And Chicago is in the batter's box.

Comcast SportsNet Chicago, which hits cable dials Friday, is an ambitious new consortium whose ownership structure will be a first in sports cable programming. In addition to Comcast, the new channel is jointly owned by the pro sports owners in town: the White Sox and Bulls, led by Jerry Reinsdorf; the Blackhawks, owned by William Wirtz; and the Cubs, owned by Tribune Co., which also owns the Chicago Tribune.

Already, the media and sports worlds are watching the experiment closely. Both businesses are in flux and undergoing painful transformations. And, of course, the two don't always get along.

On one side, networks and cable companies scream about the rising costs of sports programming. On the other, team owners cry about escalating player salaries and the disparity in revenue throughout the various TV markets.

Seemingly lost in the cacophony is the fan, who is finding it increasingly difficult to watch a game at a reasonable cost, either in person or at home.

The Chicago team owners and Comcast like the deal because they say it eliminates a middleman, which frees up more revenue for everyone involved. Comcast can now bypass Rainbow Sports' Fox Sports Net, which lost the rights to the games as part of this deal, and negotiate fees directly with the teams.

But skeptics wonder whether it will be impossible for so many owners with sometimes differing agendas to live happily together. And the new channel already is forcing strange bedfellows.

At the request of the teams involved, Comcast is negotiating with cable TV's nemesis, satellite providers, so Chicago-area fans who watch on satellite aren't blocked out of the action. Satellite viewers are out of luck in Philadelphia, where Comcast didn't strike a deal with satellite providers.

Though Comcast executives say they will reach deals to make the programming available to its competitors by Friday, negotiations are ongoing with several companies. And even if the deals get done by Friday, it may take weeks or months before all cable and satellite customers get to see all their games.

"We're very close," said Jim Corno, the longtime Chicago sports television executive who was named to head the new channel earlier this year. "There is a desire on both sides to get it done. It's never as fast as we like it to happen."

Corno, who got his start with Reinsdorf when he started a pay sports channel more than 20 years ago, has the difficult challenge of serving both Comcast and the different stakeholders. He'll also be responsible for eight hours of local programming, not including games.

Much of it will be sports news. Comcast will run "SportsRise," a three-hour morning show featuring highlights from the previous night's games as well as national recaps.

The channel also will run an hour-long noon show, called "SportsDay."

At 5:30 p.m., "Chicago Tribune Live," hosted by Dan Jiggetts, will feature reporters from the newspaper, along with other guests, discussing the day's top sports stories.

The station will begin and end prime time with "SportsNite" at 6:30 p.m. and then again at 10 p.m. And it also has a deal with the Bears to air the team's news conferences as well as live post-game coverage.

"If you get expanded basic in your home, you won't notice a difference," said Marc Ganis, president of SportsCorp, a sports consultancy. "You're likely to see more of what I call intrusive shows. When teams own the channel, they allow more inner-sanctum programming."

That could lead to more positive coverage of the teams, say some media executives, who question how objective the new station will be when it covers stories involving teams that also are its owners.

Corno isn't worried. "The business is managed by Comcast," he said. "The owners are fully aware that you have to do a credible job with the news or you're not going to keep your fans very long. The news will be fair."

Comcast will pick up Fox Sports Net's deal with the teams, which includes 42 Bulls games, 39 Blackhawks road games, 95 White Sox games and 72 Cubs games. (Baseball coverage doesn't start until spring.)

All of the teams' deals on broadcast TV, including those with WGN-Ch. 9 and WCIU-Ch. 26, will remain the same.

It's unclear whether Comcast will be able to pull ratings from ESPN and local stations. In August at 10 p.m., ESPN's national "SportsCenter" recorded a 0.7 rating and 1 share locally. Each rating point represents 34,173 households. In the same period and time slot, Fox Sports Net recorded a 0.9 rating and a 1 share.

That pales in comparison with WLS-Ch. 7's 10 p.m. newscast, which averages a 7 rating on any given night.

"We could be taking some audience from ESPN and some from the over-the-air stations," Corno said. "With the emphasis on the local teams, it could be from a lot of different sources."

But Comcast's programming lineup doesn't appear to be worrying many.

"We've operated and lived in a competitive environment with regional stations. We compete against them every day and are very well positioned," said a spokeswoman for ESPN.

Asked if she had any concerns, Emily Barr, president and general manager of Channel 7, said: "Not really. Competition is always a healthy thing. I think it's safe to say that people who want to get a short encapsulation of sports already come to us."

Media buyers have their own perspective. "It's going to be expensive," said Paula Hambrick, head of media buying firm Paula Hambrick and Associates, which buys advertising time for several local clients. "Everything new that comes along ends up costing you money."
 
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Networks turn to family values

Familial situations -- wives and children -- are intriguing hooks for new shows that debut tonight.

Television thrives on new stars and catchy concepts. Thanks to UPN and ABC, the small screen gains both tonight.

ABC's Wife Swap -- yes, it's a bad, misleading title -- offers an engrossing premise: Two women switch households for two weeks, and both families re-evaluate their lives. The reality series is so expertly done that it should intrigue people who won't go near Survivor, The Apprentice or The Bachelor.

UPN's Kevin Hill gives Taye Diggs a juicy role as a self-absorbed, skirt-chasing lawyer who must grow up when he inherits a cousin's baby daughter.

The premise sounds vaguely like the Diane Keaton movie Baby Boom, which flopped as a TV series. But Kevin Hill creator Jorge Reyes found inspiration in a relative's life, and there's a lot more to the show than the adorable baby.

After the child complicates his work life, Kevin walks out of a prestigious New York law firm. He finds employment in a smaller office where female colleagues will challenge his chauvinistic views.

Kevin learns about parenting from George (Patrick Breen), a gay nanny with a sharp wit. Kevin puts his hard-earned lessons about responsibility to use in the courtroom.

He's a man's man and a ladies' man on the path to being a better man. If that plot description makes you leery of the show, hold on.

Diggs gives such a dynamic performance that he transforms Kevin Hill into delightful entertainment. He reacts with identifiable bachelor confusion to caring for a baby, and he carries himself with a stylish swagger that suggests TV stardom will be his. Above all, he retains some of Kevin's macho edge and keeps the show from turning to mush.

The premiere offers no surprises, and the opening case will be predictable to anyone versed in L.A. Law and Ally McBeal. Yet Kevin Hill supplies tart dialogue and surrounds the title character with likable foils.

Jon Seda of Homicide: Life on the Street plays Kevin's friend and former colleague. Michael Michele of ER portrays Kevin's thoughtful new boss. Kate Levering supplies thorny glamour as a new colleague who doesn't fondly remember a fling with Kevin, to his amazement. Christina Hendricks shines in her role as a deceptively mousy lawyer.

But Breen is the standout as the humane nanny who pushes Kevin to a new understanding of parenthood. When first surveying Kevin and his two buddies with the baby, the nanny quips, "Three cavemen and a baby -- how cute, how '80s."

The same could be said of Kevin Hill, but it has a leading man who makes the show fresh and involving.

'Wife Swap'

There is no money prize in Wife Swap. There are riveting arguments and hard lessons and many tears. If that makes you wary of this reality series, it's understandable. Who needs more crying these days?

Yet Wife Swap is one of the better new series this fall. It veers closer to a documentary than standard reality, a point that could make the show more palatable to some viewers.

Two women change households. In the first week, the women follow the rules of the new dwellings. In the second week, they run the households their way. Afterward, families reunite to discuss what they learned.

The show's future will depend on the casting because participants change every week. But tonight's episode features a remarkable switch. Giving the show a rousing start are Manhattan millionairess Jodi Spolansky and New Jersey school-bus driver Lynn Bradley.

Jodi sniffs at cleaning the house, resists cutting wood for Lynn's business and argues with Lynn's selfish husband, Brad.

Lynn, who has little interest in material things, briefly indulges in Jodi's swank life of restaurant meals, $500 haircuts and four nannies for three children. When Lynn tries to push Jodi's selfish husband, Steven, to spend more time with his children, he objects.

"She comes from hillbilly land," Steven whines. "This may get a little nasty."

At first glance, Wife Swap seems to be about class in America, and it's no valentine to the affluent. Self-absorbed husbands could be major losers, as well.

But Wife Swap could do wonders for ABC. It is the second of three strong new series this fall that might bolster the Disney-owned network.

Lost, the drama about plane passengers stranded on a remote island, debuted to strong ratings last week. Desperate Housewives, the best new series this fall, arrives Sunday. You don't need to be hesitant to turn to ABC anymore.
 
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Lots of hard lessons learned in ABC's 'Wife Swap'

When it came to initially watching the pilot of ABC's "Wife Swap" (10 tonight, Channel 7), I admit my attitude was as bad as that of the husbands on the series. I approached this weekly experiment in parenting much too seriously.

I initially thought that it shouldn't take a reality show to convince any idiot that rich people like the Spolanskys of New York City have very different parenting philosophies than lower middle class people like the Bradleys of rural New Jersey.

I didn't think there were any lessons to be learned here but obvious ones that have made Dr. Phil richer than the Spolanskys.

But I was looking at "Wife Swap," which inspired the Fox summer rip-off, "Trading Spouses," the wrong way. It really isn't a drama, it's a comedy with some drama.

The title, of course, shouldn't be taken literally. I imagine we're about a decade or so away from the literal version on cable or pay-TV. ABC's series really should be called "Family Swap" or "Lifestyle Swap."

Two wives from very different backgrounds switch families, which have to adjust to their way of parenting. ABC carried a sneak preview Sunday, in which a no-fun, neat-freak mother switched houses with a fun-loving, slovenly one. Tonight's episode featuring the Spolanskys and the Bradleys is the pilot that sold the idea for the series, which is based on a British hit. The spouses are right out of central casting.

Steve Spolansky is really playing a better looking Larry David, the obnoxious, rich husband who doesn't realize his sarcastic attitude is as hurtful as it is funny.

Jodi Spolansky is what will become of Paris Hilton if she ever marries and has kids. Jodi is a spoiled rich kid from the "Me" Generation whose idea of work is going to the gym to tone her body or picking up the phone to order takeout.

Lynn Bradley is what Donna Reed or every 1960s TV housewife would have become in the 21st century if she had two dawn-to-dusk jobs to supplement her husband's income.

Brad Bradley is harder to define. He has some similarities to Dan Conner, a decent guy who lets his wife do most of the work around the house. But he doesn't quite have the charisma of any TV character that makes you understand how he pulls it all off.

The Spolanskys are so rich that you almost wonder if they hired joke writers.

The best of Jodi, the spoiled rich wife who has four nannies to take care of her three kids and who hadn't made a meal in eight years or cleaned a toilet.

"Can I clean?" Jodi asks. "I guess I can clean."

"There is a vacuum cleaner (here), which I don't know how to use."

The best of Steve, the millionaire husband: "Jodi has her money and she certainly is good at spending it."

"Jodi really is driven. Right now, the only way she is driven is by a chauffeur."

Steve, dryly to Lynn, after she dismisses his wife's four nannies: "Are they taking the kids with them?"

Steve to Lynn, after she serves his family a disappointing final dinner of soup and peanut butter sandwiches: "I was expecting something extravagant, like goulash or franks and beans."

The best of Brad, talking about his inability to deal with Jodi: "It isn't even a question of different worlds, it is different planets."

The choice of music adds to the humor level, with blasts from the past from Petula Clark and Burt Bacharach capturing the mood perfectly. And in the end, the show ends just like a sitcom, with hugs, apologies and life lessons.

The Spolanskys may realize they should spend more time with their kids and Brad may realize he should help his wife more. Steve and Brad could have saved all the suffering for two weeks if they had just watched one episode of Dr. Phil.

The lesson for kids is that they can be handcuffed by their parents' attitudes and life can be more enjoyable and rewarding once their parents learn a few things about their roles.

At a party in Los Angeles, Jodi Spolansky told me her husband was less than amused at the final product. Apparently, Steve didn't like coming off looking like as big a jerk as Larry David.

He may have been the only one who isn't redeemed, but Steve really is the star of the show. His role on "Wife Swap" is over. But if ABC were smart, they'd build a sitcom around his sarcastic character. And Fox might consider stealing Jodi for a reality series in case Paris and Nicole don't want to keep making more versions of "The Simple Life."

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Why Disney Is Destroying Barbie

I came home from work to have Sleeping Beauty and Snow White waiting for me at the door. They both were holding something. Ah, yes, of course: Sleeping Beauty was holding her Sleeping Beauty doll, while Snow White gripped her Snow White doll. The day before, it was Cinderella and Tinkerbell. Same thing.

Ah, the joys of having 4-year-old and 2-year-old girls.

We've seen the renaissance of Marvel based on its improved cultivation of existing assets. But what about Disney's own rejuvenation?

Five years ago Disney had a tired consumer products division with a floundering network of Disney Stores offering products that, while related to its extraordinary portfolio of characters, had no apparent strategy for keeping consumer interest in these products over extended periods of time. They had trend-driven strategies but had failed to capitalize on the annuity value of many of their most beloved characters. Fast-forward to today: Dolce & Gabbana is reportedly designing a sequined Mickey Mouse T-shirt that will retail well north of $1,000, Disney Stores have been trimmed back to just a few highly profitable top-shelf locations, and at the center of it all is a concept that makes every single day Halloween in the Mann household: the Disney Princesses.

The Disney Princesses line is even doing something that few thought possible: It is providing a real, credible challenge to that gold standard of children's toys, Mattel's Barbie. And what did Disney do to turn this into a billion-dollar powerhouse? Simple: It took a set of characters it already had -- Snow White, Jasmine, Sleeping Beauty, Belle, Cinderella, and Ariel (and yes, I recited these from memory) -- created a long-lived theme around them, and sold products based on them as a group.

Barbie, for all of its brand power, cannot compete with the Disney Princesses in terms of associative power. Mattel has accessories galore that go along with Barbie dolls, along with some adjunct books and videos, including computer-animated features with Barbie starring in stories based upon ballets such as the Nutcracker and Swan Lake. There isn't a huge adjunct business for children who want to dress up like Barbie, though.

Contrast this to the Disney Princesses. Disney doesn't need to develop stories around them: These are well-known and beloved. The company can market dolls and accessories, much like Barbie, but it also has created an enormous business out of promoting products that allow little girls to pretend that they are the princesses: tiaras, costumes, books, secondary videos, music, and so on. From next to nothing only a few years ago, Disney Princesses will generate more than $2 billion in product sales and additional income tied to other Disney properties, such as the princess-related events that have sprung up at the company's theme parks.

Disney Princesses, you see, have theme parks. Barbie has Ken. The Princesses have decades' worth of brand equity and wholesome images to back them up. Barbie has Ken. This is a big, big deal, and it's just getting started. Barbie didn't grow to be a multibillion-dollar property out of luck -- there is some incredible marketing competence at Mattel. I don't think they've ever run into a challenger like Disney, though.

Try this: If you're out trick-or-treating in a month, count the Princesses, and count the Barbies. You may be surprised how much the pendulum has swung in a very short time.

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Euro Disney stock up on creditor rescue

Shares in theme park Euro Disney rallied strongly by 9.38 percent in early trading on Wednesday in relief that a roller-coaster ride to obtain creditor backing for rescue refinancing had ended safely.  

One stock analysts here, who declined to be named, commented: "This is good news because it avoids Euro Disney filing for insolvency.  

"However, the share remains highly speculative. The situation is not at all clear and the cost of servicing the debt is enormous.  

"For investors to return to buying the stock, the management must reassure about group profitability which is one of the weak points in Euro Disney."  

The company, which operates a Disney leisure park, hotels and property interests east of Paris, has been unable for a year to meet debt payments and has had to extend several deadlines to win creditor backing.  

The price of the shares rose by 0.3 cents or 9.38 percent to EUR 0.35 on being re-quoted after suspension on Tuesday.  

The shares touched a high point of EUR 10.25 in 1992, the year that one of its two theme parks near here, Disneyland Paris, opened. But by 1994 it was in serious financial problems and negotiated a first debt restructuring with its creditors.  

The company, 39.0-percent owned by The Walt Disney Company, was theoretically at risk of bankruptcy until it won round the last creditors shortly before the latest deadline for a deal expired on September 30.  

Euro Disney, burdened with debt of about EUR 2.4 billion (USD 2.9 billion), said it had had agreed with its lenders a revised version of an agreement it had reached with its US parent and the French state financial institution Caisse des Depots et Consignations on June 8.  

But the changes required that interest on about EUR 450 million of senior debt would be increased by about two percentage points and that final payment on some senior debt would be extended to 2012 instead of a longer period to 2014.  

However the company had obtained permanent concessions on some subordinated debt of EUR 30 million.  

The agreement, effective from October 1, was subject to completion of a rights issue to raise EUR 250 million by March 31, 2005.  

One source close to the matter said that the negotiations had dragged on because investment funds which had bought debt from banks had taken a hard line.   Press reports had suggested that US speculative investment fund Black Diamond had been the last to sign, demanding an increase of interest paid on senior debt.  

Chairman and chief executive Andre Lacroix said that the agreement "is a significant step towards further developing the magic of Disneyland Resort Paris."  

Chief financial officer Jeffrey Speed said: "Once implemented, the agreement will provide significant liquidity, including measures intended to mitigate the adverse impact of business volatility, as well as capital to invest in exciting new rides."  

At brokers Fideuram Wargny, analyst Virginia Blin said that the basis of the financial restructuring was to extend the timetable for debt payments to give it time to put its operations on a sound footing.  

But the key was to increase the number of people visiting the park, she said.

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Investors sceptical of Euro Disney's prospects

Investors remained sceptical about the prospects for recovery at Euro Disney on Thursday despite the Disneyland Paris operator's eleventh-hour rescue deal with its leading creditors and shareholders.

Shares in Euro Disney jumped in early trading, reflecting relief that the French arm of the Magic Kingdom had narrowly avoided bankruptcy.

But they fell back later, closing up €0.01 at €0.33, as the tough challenges facing Europe's biggest tourist attraction started to sink in.

The rescue plan agreed on Monday night was welcomed by analysts as providing the company with badly needed breathing room to turn round its struggling operations.

Since opening a second theme park two years ago near Paris Walt Disney Studios it has been hit by a falling visitor numbers and rising losses. Last year it made a €56m ($69m) loss and it has already warned this will widen in the year ending September 30.

Yet few analysts believe Euro Disney will be allowed to collapse. It has strong support from US media group Walt Disney, its biggest shareholder with 39 per cent, which is determined to prevent the embarrassing collapse of one of its brand's biggest overseas outposts.

Euro Disney can also count on the backing of the French government, its biggest creditor through state bank Caisse des Dépôts et Consignations, which holds €900m of its €2.4bn debts. Since it opened about 20,000 jobs have been created, making it the Paris region's biggest employer.

But analysts warn that shareholders are unlikely to benefit, even if it makes a rapid recovery. The proceeds of any return to profitability will first go to repaying the deferred management fees and royalties owed to Walt Disney and to paying down its crippling debt pile.

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Bring Disney Magic Into Your Kitchen With New Disney Smoothie Maker and Disney Popcorn Popper

Available Nationwide Just in Time for the Holidays, Disney Offers Fun and Highly Functional Appliances for Preparing and Sharing Snacks Together

                                                    


Disney Consumer Products today announced the launch of the new Disney Smoothie Maker and Disney Popcorn Popper, both designed to bring Disney magic into one of the most important gathering places in the home -- the kitchen. The new line of appliances is an expansion of the company's innovative new line of consumer electronics products designed for kids and families that combine Disney's entertainment content with leading technology and design. Both products will be available in October at major retail outlets nationwide, just in time for the holiday season, and are the first in an ongoing line of appliances that will continue to be introduced to consumers.

A collaborative design effort between Disney and Back to Basics(TM) Products, Inc., the Disney Smoothie Maker and Disney Popcorn Popper are designed for durability and top performance and have a look and feel that fits any modern or traditional kitchen. The new appliances have special safety features and offer simple, step-by-step instructions.

"Warm popcorn and fresh smoothies are extremely popular treats, and preparing snacks together can be a fabulous experience for the whole family," said Chris Heatherly, director of Electronics/Appliances for Disney Consumer Products. "We've designed the products to capture the essence of what Disney is all about -- fun, magic and family."

The Disney Smoothie Maker and Disney Popcorn Popper provide parents with a great opportunity to introduce kids to the concept of reading a recipe, calculating basic measurements and following basic kitchen safety rules. The popcorn popper makes five quarts of fresh, delicious popcorn, which is large enough for an entire family to share. A pre-portioned lid measures corn kernels for calculating the desired serving amounts. The clear design lets everyone watch the popcorn popping.

Manufactured and distributed by Back to Basics, the Disney Smoothie Maker is red and has a capacity of 40 ounces. It features a quick-mixing stir stick, mess-free dispensing valve, safety locks and is whimsically designed, with Disney-style non-slip rubber "feet" at the base. The Disney Popcorn Popper has a capacity of five quarts, features a non-stick coated popping surface, a cover that flips to become a serving bowl, a motorized stirring rod, heat-resistant handles and base, and Mickey's white non-slip rubber "feet." Both items are available at a suggested retail price of $39.99 each.

"The new Disney Appliances are technologically savvy with special safety features and lots of Disney magic," said Randy Hales, president of Back to Basics. "Whether for single or family use, these appliances allow users to enjoy time in one of the favorite rooms of the house -- the kitchen."

For more information and images of the new Disney Smoothie Maker and Disney Popcorn Popper and the new line of Disney Electronics products, please visit www.disneyconsumerproducts.com.

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In the Magic Kingdom, a Truce

Roy Disney and Stanley Gold applaud the board for looking to replace CEO Eisner, but they insist that it happen sooner rather than later

The showdown at Disney may not happen after all. Dissident former board members Stanley Gold and Roy Disney said on Sept. 28 that they support the board's accelerated search for a new CEO, making it unlikely the duo will wage a proxy fight at the next annual meeting.

Gold and Disney will be watching carefully for the board to implement its plan to find a successor to CEO Michael Eisner by June, 2005, they warned in a press release. In what sources close to Disney and Gold say amounts to a victory statement, the pair hailed the board for "precisely the kind of leadership and independence which we and the vast number of shareholders who share our concerns had been requesting."

FRESH FACES.  Unclear is whether the pair might still decide to run five or six of their own candidates at the annual meeting, expected in February. Under Disney's bylaws, they would need to announce a slate by early December to get their candidates on the ballot. After hints that they have interviewed candidates for the 11-person board, their Sept. 28 statement didn't address that issue. However, it did encourage the board to add as many as two members before conducting the CEO search.

Gold and Roy Disney appeared to give their endorsement to two names being circulated: longtime Hollywood executive Haim Saban and former SEC Chairman Richard Breeden. "We think that each of these individuals, although not our candidates, would be excellent additions...and give all shareholders a sense that the board is listening to its owners," they said.

The board, which met last week, moved more quickly than Eisner had anticipated when he announced his intention to retire in September, 2006, at the end of his current contract. The board last week said it would hire a search firm and set a timetable to complete its CEO search by June, 2005. It also promised to cast a net for candidates outside the company.

Eisner's choice, Robert Iger, would be considered, the board said, praising the current president and chief operating officer's performance. Gold and Disney didn't address Iger's candidacy in their statement, but they are known to want someone other than the longtime Disney and ABC executive. Neither Gold nor Disney was immediately available for comment.

TOUGH TALK.  The two former directors did include a veiled threat to take action if the board doesn't carry out its plan. "We are willing to take Chairman George Mitchell at his word that Mr. Eisner will step down," they said in their statement. "Since all shareholders will be watching the board's actions on this matter, we encourage Chairman Mitchell to communicate frequently, and in some detail, regarding the status of the search."

Sources close to Gold and Roy Disney indicated that if the board appears to be dragging its feet in hiring a search firm, or on any other aspect of its search, they would reconsider their plan to elect their own board members.

Gold and Disney helped rally opposition to Eisner at the last Disney annual meeting, where shareholders holding 45% of the stock withheld their support for Eisner's reelection. The board stripped Eisner of his chairmanship but endorsed his management of the company. Disney had no immediate comment.

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Has ABC Found Its Way with Lost?

The new drama may have broken the ailing network's hit drought. A smart new programming exec and a buzz-worthy fall lineup also helps.

My wife Valerie never ceases to amaze. Not merely with her beauty or her brains, both of which I have appreciated for years. But at the car wash last weekend, she declared, out of nowhere, that she wants to carve out some time in her Sunday night schedule for an ABC show called Desperate Housewives, a soap opera that takes a darkly comic look at women in suburbia.

 That ABC has a program a smart person wants to watch -- one that doesn't include bachelors, football, or Regis Philbin -- is a huge step in the right direction for a network that recently seems to have set the world record for airing stinkers. And Desperate Housewives isn't even scheduled to debut until Oct. 3.

"NOT SPECTACULAR, BUT GOOD."  This isn't to say that the Disney-owned network is in the midst of a major turnaround. Finishing third among the Big Four networks would be an accomplishment. Last year was the third in a row in which ABC lost viewers in the key 18-to-49-year-old age group that advertisers most want, according to ad-buying firm Starcom Entertainment. And it finished dead last among the Big Four in both total network viewership and with viewers 18 to 49.

But a strange thing happened on the way to September, when the networks start to roll out their new shows. While Viacom's CBS and GE's NBC have been duking it out in the early going for bragging rights to younger audiences, ABC has quietly put together a lineup with more promising newcomers and returning sophomores than it has had in years.

"The new shows this season aren't spectacular, but they're good," Starcom Senior Vice-President Laura Caraccioli-Davis wrote in a recent report. "In fact, [they're] some of the best ABC has had in recent years." Among them: the heavily hyped drama Lost, which follows a group of plane-crash victims on a deserted island.

It launched with a surprisingly strong opening week on Wednesday, Sept. 22, with 18 million viewers and a good showing with the 18-49 demographic. It was ABC's strongest opening for a new drama in nine years, and it gave the network the win at 8 p.m. for the night, according to The Programming Insider newsletter.

LONG WAY TO GO.  "They could be onto a strong building block [with Lost]," says Brad Adgate, senior vice-president of media-buying firm Horizon Media. Adgate figures that ABC needs some strong dramas -- like CBS's CSI franchise and NBC's Law & Order -- to give it a jump start. Adgate also likes the prospects for Desperate Housewives, a soap opera about sex-starved suburban women that will air on Sundays at 10 p.m.

Promoting Tuesday's male-skewing comedy lineup during Monday Night Football games and concentrating on improving fortunes on Wednesday and Sunday nights, where the dramas usually draw larger audiences, is smart, Adgate says. "ABC has a defensible plan. Things are starting to look a lot more strategic."

Still, it has a long way to go, Adgate and just about everyone else agrees. The network last year lost about $350 million on about $3.1 billion in revenue, Merrill Lynch analyst Jessica Reif-Cohen wrote in a recent report. She figures that the overall amount of advertising that the four major networks sold in the "upfront" market this June increased by about 4%, to $8.4 billion.

ABC sold about $1.6 billion upfront this spring, about the same as last year, as it withheld a lot of spots in the hopes that its shows build audiences and can command higher rates. If the early numbers hold -- such as a better-than-anticipated second-season premiere of its Extreme Makeover: Home Edition -- ABC could have the last laugh.

HOT SHOW-PICKER.  Promotion is another challenge. Unlike NBC, which had the Olympics, and Fox, which has American Idol, ABC didn't have a huge summer-ratings extravaganza that it could use to push its new shows. (Even its Monday Night Football games have the occasional stinker, and folks drift off.) Instead, it was forced to advertise its new shows on billboards and cable channels. But that strategy is working: Witness my wife's enthusiasm for a show she has yet to see.

Another reason folks are talking about ABC's shows is the network's new programming boss, 39-year-old Steve McPherson. He's considered one of TV's hottest show-pickers. Problem is that for the last few years, too many of the the shows he picked went to other networks. As head of Disney's Touchstone Television unit he green-lighted CSI, then saw it go to CBS when ABC decided not to air it. ABC also turned down Touchstone-produced Scrubs, which NBC picked up, and the UPN sitcom Kevin Hill.

"I can't dwell on the fact that we're getting killed by some shows that could have helped us here," says McPherson, who moved over from Touchstone to ABC in April, when Disney cleaned house at the network. Now, he'll make sure the best stuff stays at ABC. "The good news is that I know the shows and where they'll work best for us," he says. Among the shows he approved at Touchstone that will air on ABC are Lost, Desperate Housewives, and Gray's Anatomy, a medical drama that's already getting some critical buzz.

IT'S A START.  McPherson is also lowering expectations -- a smart move for any ABC executive. "We're not programming for critics, and we're not going to take on NBC or CBS for the 18-to-49 demo lead," he says. "But we think we have the shows that can start to bring people to ABC, and that's where it all starts."

Indeed it does. And maybe, just maybe ABC finally has found the shows that folks will actually want to watch. Just ask my wife.
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New Stitch Sign at Magic Kingdom

A new sign has been placed within the walls of the soon to be opened Stitch's Great Escape attraction in Tomorrowland. Stitch's Great Escape is slated to open in November.

                                                       

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Honey I Shrunk the Kids Temporarily Closed

Due to damage from Hurricane Jeanne, Honey I Shrunk the Kids Movie Set Adventure at the Disney-MGM Studios, will be closed for repairs until further notice. Updates regarding the re-opening of this location will be made as information becomes available. 

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Fort Wilderness and Vero Beach Information

Disney's Fort Wilderness Resort & Campground will reopen to all Guests on Wednesday, September 29 at 12 noon. Guests of Disney's Fort Wilderness Resort & Campground were temporarily re-located to other Walt Disney World Resort properties on Saturday, September 25 due to weather.

Disney's Vero Beach Resort closed due to weather on Friday, September 24. Guests holding reservations at Disney's Vero Beach Resort with arrivals through Sunday, October 31, are being contacted to rebook, cancel or move their stay.

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Mouseketeer Clubhouse to Close

From October 1, 2004, the Mouseketeer Clubhouse at Disney’s Contemporary Resort will no longer operate.

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American Pyrotechnic Association (APA) Fireworks Display - Seven Seas Lagoon: Magic Kingdom Resort Area Closures for Thursday September 30, 2004

On Thursday, September 30, immediately following Park Clear of the Magic Kingdom Park, a special fireworks display will take place for the American Pyrotechnic Association (APA). As a result, all buses (including those in the Magic Kingdom Bus Turnaround), monorails, watercraft and foot traffic between the Seven Seas Lagoon traffic light at World Drive and Park 1 will need to be shutdown and clear of Guests and Cast from approximately 9:30 p.m. to 10:30 p.m. The Magic Kingdom Park will close at 8:00 p.m. on Thursday.

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Police chief uses state vehicle during trip to Disneyland

Should a New Mexico State Police vehicle be used during a family vacation to Disneyland?  That was the question aimed at the state police chief after KRQE News 13 learned he did exactly that after a conference in April of this year.

However, the state says Chief Carlos Maldonado broke no regulations, and the chief says he regularly uses his personal vehicle for state business and never asks for reimbursement.

Maldonado says on Saturday April 3rd he and his family loaded up his state police SUV and hit the road for the long drive from New Mexico to San Diego. Maldonado would attend a law enforcement conference put on by the FBI.

But when the week long conference on ended on Friday April 9th, the chief didn’t drive back home as his travel schedule shows.  Instead, he and his family drove from San Diego to Anaheim where the family stayed for the Easter weekend.

According to the chief, he didn't use the state SUV after arriving in Anaheim. He says the family even took a shuttle from the hotel to Disneyland. But when pressed, he did admit to using the car for dinner.

”When we went to our destination, the vehicle was parked the entire weekend--absent meals in the evening," said Maldonado.

The Department of Public Safety says Maldonado didn't violate any state policies and that use of the state vehicle is up to the discretion of the chief.

Maldonado says in hind sight he would not have used the state car to stay the extra days.

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For Them, the War at Disney Isn't Over

Ex-directors Roy Disney and Stanley Gold now turn their attention to the board, and possibly a new battle

In the week since the Walt Disney Co. board announced it would move quickly to find a successor to Michael Eisner, the chief executive's two fiercest critics have publicly been as quiet as, well, a mouse.

But behind the scenes, former Disney directors Stanley P. Gold and Roy E. Disney have been canvassing their allies, seeking consensus on whether their work is complete. Their answer came Tuesday: Yes, with reservations.

"I'm heartened, but we're not done," Roy Disney, nephew of the company's co-founder, said in an interview at his Burbank office. He and Gold made clear that they were reluctant to declare victory too soon. They said they still could make good on their threat to propose an alternative slate of directors if it appeared the board was retreating from its promise to conduct a far-reaching search for Eisner's replacement.

Describing himself as cautious, Roy Disney quoted a line from Greek mythology: "There's many a slip 'twixt the cup and the lip."

Still, Gold and Disney offered kind words to a board they've vilified for the better part of a year.

In a statement, they praised directors for deciding to conduct an independent search and to name Eisner's replacement by June, a display of "precisely the kind of leadership and independence" needed. Gold and Disney had pushed the board hard on both those issues, as well as in obtaining assurances that Eisner would not be named chairman after his contract expired in September 2006.

The board did not, however, set a definitive timetable for Eisner's exit, as Gold and Disney had wanted. Instead, the directors said he would step down when his replacement was installed. The pair acknowledged in their statement that the board "left some questions unanswered."

Among Gold and Disney's biggest remaining concerns is the possibility that the board might end up backing Eisner's preferred choice, Disney President Robert Iger, when the search is completed. The directors recently praised him as an "outstanding executive" and the "one internal candidate."

The dissident former directors have often stated that the selection of Iger would be unacceptable to shareholders, given his close ties to an Eisner management team that they accuse of tarnishing the company's finances and image.

"What we've said about Bob Iger stands," Gold said Tuesday. "We think there are stronger candidates out there."

Among the names most often mentioned: News Corp. President Peter Chernin; Yahoo Inc. CEO Terry Semel; Viacom Inc. Co-President Leslie Moonves; and Time Warner Inc.'s Jeff Bewkes, who is chairman of the company's entertainment and networks group.

Neither Gold nor Roy Disney would say exactly what action they might take if Iger were selected as the best available replacement for Eisner. But the two have repeatedly threatened to wage a proxy fight "with unrelenting vigor" to pressure the board. They have until Dec. 3 to nominate a full or partial alternative slate of directors. Gold said he and Roy Disney had enlisted "enough high-quality people to run a slate," but he would not provide their names.

In their statement Tuesday, Gold and Disney endorsed two board candidates proposed by a coalition of pension funds during a recent meeting with Chairman George J. Mitchell. They are TV mogul Haim Saban and former Securities and Exchange Commission Chairman Richard Breeden.

"These individuals have unassailable credentials in the entertainment industry and in corporate governance, and it would not take long for either of them to get up to speed," the statement said.

Saban declined to comment other than to say: "I am waiting for the board and the shareholders to resolve their issues before I make my decision." Breeden did not return a call or an e-mail.

The pension funds, which helped engineer a shareholder revolt in March that led to a 45% no-confidence vote against Eisner, could again find themselves allied with Gold and Disney.

Some funds have grown increasingly frustrated with what they consider to be the board's slow response to their request for two independent directors who could participate in the selection of a new CEO. Officials of those funds have privately suggested that if the delay continues, they may join Gold and Disney in a proxy fight.

Although Gold, Disney and the funds have proved their ability to mobilize shareholders, they would face a tough challenge in dislodging the current board, investors say, including those sympathetic to the cause. Some investor representatives surveyed by Gold and Disney in recent days had bluntly told the two men that the odds were long, said sources familiar with the conversations.

The sense of urgency that preceded the March shareholder vote, according to many observers, has passed now that the board has made clear its succession plans.

"It certainly takes a ton of pressure off this board and will make a proxy fight a very difficult battle to win," said Greg Taxin, CEO of Glass Lewis, one of the proxy advisory firms that had advised its clients to withhold votes for Eisner's reelection to the board

What's more, Disney's financial performance has improved. Earnings are expected to rise more than 50% this fiscal year, thanks largely to a recovery in Disney's theme parks and consumer products operations.

"Given the events of last week and [Disney's] improved performance, a lot of the swing votes that went to Roy and Stanley last time are leaning toward the board," said Patrick McGurn, senior vice president of Institutional Shareholder Services. "But that could change if the performance falters and the board meanders in its search for a new CEO."

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Spader Moves His 'Practice' to 'Boston'
 
When David E. Kelley came calling last season, James Spader says he didn't think twice about signing on as a new cast member on the Emmy-winning "The Practice."

It was only later that he started to realize that weekly shows have to be filmed, well, every week.

"I was so ignorant about what this really meant when I said I'd like to do ['The Practice']," says Spader, who reprises his role as morally ambivalent attorney Alan Shore in "Boston Legal," the "Practice" spinoff premiering Sunday, Oct. 3, on ABC.

"I really had no sense of what was involved," the actor continues. "The reservations grew at about four months [into the show] when all of a sudden, I realized I was still going to be continuing to act for the rest of the year. It took me the rest of the season to kind of get over that hurdle. But I was just having so much fun along the way that it made all that dissipate.

"David E. Kelley was able to make this character so repellent and compelling in the same moment. His behavior at times was endearing and yet appalling in the same moment. And he would say things that were inappropriate, but maybe were things everyone else really wanted to say."

Spader's witty, Emmy-winning portrayal of the charming but smarmy Shore is credited by many for re-energizing the faltering "Practice," especially in the wake of massive cast layoffs. The actor will be at the heart of the "Boston Legal" ensemble, which also includes William Shatner, Rhona Mitra, Lake Bell and Mark Valley. Don't look for guest appearances by former "Practice" stars such as Camryn Manheim anytime soon as "Legal" establishes its own identity.

"It will be as different from 'The Practice' as it can be," says Bill D'Elia, one of the new series' executive producers. "We have no intent to visit those heavy criminal cases. These will be a lot more fun, a lot more civil, and with a lot more money involved in these cases. It's a very different world."

In addition to Spader's Shore, the upscale Boston law firm where the series is set is occupied by wildly eccentric senior partner Denny Crane (Shatner), as well as attorneys Tara Wilson and Sally Heep (Mitra, Bell) and the recently recruited Brad Chase (Valley, "Keen Eddie"). While the latter three are somewhat more straight-arrow than Shore and Crane, all of the characters on "Boston Legal" are far more flawed than idealistic Bobby Donnell (Dylan McDermott) or Ellenor Frutt (Manheim) in "The Practice."

"I think every one of these characters has heroic traits," says Jeff Rake, another "Boston Legal" executive producer. "There's also a slightly dark side to each and every one, and I think the fun of the show, and also the most compelling moments, will be finding the moments where the heroism and the darkness collide with the outside world."

Besides, Shatner chimes in, sometimes it's not a bad thing to have a cunning character such as Shore or Crane standing next to you in court.